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Legal news from Wednesday, February 16, 2005 |
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FBI head warns Senate panel on international, domestic terror threats
Jeannie Shawl on February 16, 2005 2:46 PM ET

[JURIST] FBI Director Robert Mueller told the US Senate Committee on Intelligence [official website] Wednesday that the FBI remains concerned about attacks by al-Qaida and related terrorist groups, particularly the threat of attack from covert operatives already inside the US, al-Qaida's intention to use chemical, biological, radiological, nuclear or high-energy explosives in an attack, and the potential for al-Qaida' to leverage extremist groups with connections to the terror network and to exploit radical American converts and other indigenous extremists. Mueller also testified that a variety of domestic terrorists, including animal rights and environmental extremists, US-based black separatist groups, the right-wing Patriot movement, and anti-abortion extremists also pose a threat. Read Mueller's prepared testimony [text] in full. Additional testimony [statement list] from Wednesday's hearing on current and projected national terrorist threats to the US is also available. AP has more.


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Corporations and securities brief ~ Three insurance executives plead guilty to fraud
Amit Patel on February 16, 2005 2:30 PM ET

[JURIST] Leading Wednesday's corporations and securities law news, a former senior executive at Marsh & McLennan Cos. Inc. [corporate website] and two executives from American International Group Inc. (AIG) [corporate website] have pleaded guilty to fraud charges. The charges were brought as part of New York Attorney General Eliot Spitzer's [official website] investigation of fraud in the insurance industry [Spitzer press release]. Spitzer has obtained nine guilty pleas from executives at AIG, Marsh, ACE Ltd. and Zurich Financial Services AG [corporate website] since starting the investigation last year. Read the Spitzer press release. USAToday has more.
In other news... - Following up on a story JURIST's Paper Chase reported yesterday, sources indicate California insurance regulators and French bank Credit Lyonnais [corporate website] have reached a settlement of the state's lawsuit alleging the bank and several investors fraudulently obtained defunct insurer Executive Life. The settlement was reached after California Insurance Commissioner John Garamendi [official website] and Sierra National Insurance Holding Co., a plaintiff in the case, agreed to the terms. Credit Lyonnais will reportedly pay $525 million to California and $75 million to Sierra. AP has more. From Paris, Le Monde has local coverage in French.
- ChoicePoint Inc. [corporate website], which sells consumer data to government agencies and a variety of companies, has warned thousands of Californians that the company's computer network was compromised and hackers may have stolen credit reports, Social Security numbers and other sensitive information. AP has more.
- Lawyers for former WorldCom chief Bernard Ebbers [Wikipedia profile] began its cross-examination of the government's star witness, former chief financial officer Scott Sullivan, today. Under cross-examination, Sullivan said he deliberately misled WorldCom's board in 2002 when he defended baseless accounting entries that covered up the company's expenses. Sullivan, who already pleaded guilty to fraud, is the prosecution's only witness to directly link Ebbers to the fraud. Read Ebbers' indictment [text, PDF] and the superseding indictment [text, PDF]. AP has more.
- Citigroup's [corporate website] Chief Executive Officer Chuck Prince [Citigroup biography] has sent an internal memo to the company outlining a five-point plan which emphasizes staff training and independent controls to combat the company's role in recent scandals. The memo is a response to the high-profile bond-trading disaster in Europe and the loss of its private banking license in Japan. Reuters has more.
- The European Court of Justice [official website] will hear a case over whether Greece should be the only EU country to be allowed to label its cheese feta. The Danish and German governments are challenging the European Commission [official website] ruling which gave Greece sole rights to use the name thereby effectively restricting the use of the feta name to producers there. BBC News has more.
- Russia's Interior Minister Rashid Nurgaliyev [official biography] announced the detainment of the heads of two large Russian oil companies on suspicions they embezzled more than 1.5 billion rubles in state funds. AP has more.
- National Association of Securities Dealers (NASD) [official website] has charged mutual fund underwriter and distributor American Funds Distributors [corporate website] for violations of NASD rules when American Funds directed $100 million to top sellers of their fund as reward money. Read the NASD press release. Reuters has more.
- Circuit City Stores Inc. [corporate website] announced its plan to close 19 stores and other facilities as part of an initiative to improve its financial condition. The move comes a day after the company received an unsolicited takeover bid. Read the Circuit City press release. AP has more.
Click for previous corporations and securities law news.


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ACLU asks Gonzales for special counsel probe of detainee abuse
Jeannie Shawl on February 16, 2005 1:45 PM ET

[JURIST] The American Civil Liberties Union [advocacy website] has asked Attorney General Alberto Gonzales [official profile] to appoint a special counsel to investigate allegations of abuse of detainees held at Abu Ghraib prison [JURIST Hot Topic archive], Guantanamo Bay [JURIST Hot Topic archive] and those transferred to foreign countries that engage in torture of prisoners. In the ACLU letter [text; ACLU press release], ACLU Exective Director Anthony Romero wrote: An outside special counsel is the only way to ensure that any civilian who violated the War Crimes Act[1], 18 U.S.C. 2441, or who violated, or conspired to violate, the Anti-Torture Act[2], 18 U.S.C. 2340-2340A, or other federal laws against torture and abuse will be held accountable and responsible for criminal wrongdoing....
[P]articularly after new reports of the involvement of White House, Justice Department, and other high-ranking government officials in formulating or applying many of the policies that paved the way for the horrors of Abu Ghraib and Guantanamo Bay, it is clear that the Justice Department under your leadership would have an unavoidable conflict of interest in fully investigating and prosecuting wrongdoing by civilians in this matter. Gonzales' spokesman has said the attorney general has not yet received the letter, but said that Gonzales will "pursue any allegations of torture or illegal conduct" and will administer the law fairly and ethically. Wednesday's Washington Post has more.


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Robertson: Democrats blocking Bush judicial nominees will pay at the polls
Bernard Hibbitts on February 16, 2005 8:56 AM ET

[JURIST] In a speech [prepared remarks] delivered to the National Press Club Tuesday, Christian Coalition founder Pat Robertson [official website; profile] accused the federal judiciary of usurping legislative and executive power, called for the Senate leadership to force votes on President Bush's judicial nominations [JURIST report], and suggested that Democrats blocked those nominations at their electoral peril: Even as we opposed tyranny abroad, we also oppose tyranny at home. In my view, the greatest cause of domestic political discord is the usurpation of legislative and executive power by non-elected judges who are not content adjudicating cases between litigants, but attempt to determine from the bench matters given by the Constitution to the elected Congress and the President....
People of faith feel outraged and helpless as they watch unelected judges methodically crafting a Constitution unknown to the founders which permits the virtual extirpation from the public square of our time-honored affirmation of faith, then gives by judicial fiat federal constitutional protection (beyond the reach of any elected body) to abortion on demand, homosexuality, homosexual marriage, and blatant Internet pornography.
People of faith want the Congress to take back the power given it under the Constitution to limit where necessary the appellate jurisdiction of the Supreme Court and follow clear constitutional guidelines for the confirmation of federal judges. The Senate Republicans have the votes to force up or down votes for the confirmation of the president's judicial appointments. Majority vote, not the filibuster, is the American way. The defeat of the former minority leader of the Senate should send a clear message that obstructionism, especially when it concerns the confirmation of Judges, does not sit well with American voters. C-SPAN offers recorded video of Robertson's speech. AP has more.


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Global warming pact comes into force
Jeannie Shawl on February 16, 2005 7:55 AM ET

[JURIST] The Kyoto Protocol [official website; BBC News Q&A] takes legal effect Wednesday, 90 days after Russia ratified the treaty [JURIST report], providing the necessary number of ratifications for the treaty to come into force. Before becoming effective, the protocol, which aims to slow global warming by cutting greenhouse gas emissions, required countries representing 55% of global greenhouse gas emissions to ratify the treaty. The US and Australia, citing economic reasons, are not parties to the treaty [JURIST report on US position], and several developing countries, including China and India, also have not ratified the Kyoto Protocol. According to the UN's status of ratification [country list, PDF], 141 countries and regional economic integration organizations have deposited instruments of ratifications or approvals, and the total percentage of emissions by parties to the treaty now stands at 61.6%. BBC News has more.


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Legal agenda and live webcasts ~ Wednesday, Feb. 16
Chris Buell on February 16, 2005 12:01 AM ET

[JURIST] Here's a run-down of law-related events, expected developments and live webcasts on JURIST's docket for Wednesday, Feb. 16.
The US Senate [official website] convenes at 9:30 AM ET today, and it will consider S. 384, the Nazi War Crimes Working Group Extension Act. Watch a live webcast of proceedings. The Senate Environment and Public Works Committee [official website] is holding a business meeting [Atlanta Journal-Constitution report, registration required] at 9:30 AM ET to consider S. 131, which would amend the Clean Air Act [text, PDF] to extend cap-and-trade programs to regulate air pollution. The Senate Health, Education, Labor and Pensions Committee [official website] is holding a hearing at 10 AM ET on safety and security issues relating to drug importation. View a hearing agenda [text]. The Senate Judiciary Committee [official website] Subcommittee on Constitution, Civil Rights, and Property Rights is holding a hearing on obscenity prosecution and the Constitution at 3 PM ET. Read the hearing agenda [text], and watch a live webcast.
The US House [official website] convenes today at 10 AM ET for regular business. Watch a live webcast of proceedings. The House Resources Committee [official website] is holding a hearing at 11 AM ET on the status of the Indian trust fund lawsuit, Cobell v. Norton [plaintiffs' website]. Read a hearing agenda [text], and listen to live audio from the hearing. The House Energy and Commerce Committee [official website] Energy and Air Quality Subcommittee will hold an 11 AM ET hearing on the Energy Policy Act of 2005 [text]. Watch a live webcast of the hearing.
The Kyoto Protocol [official website], the global treaty on climate change, takes legal effect today, with 128 countries participating in the framework. In connection with this, EU Environment Commissioner Stavros Dimas [official profile] will hold a press conference on the Protocol and its impact. Watch a live webcast of the press conference beginning at 11:30 AM local time [5:30 AM ET].
The UK Court of Appeal [UK Court Service] is expected to rule [Reuters report] today on whether a ban on using hunting dogs is valid. The Countryside Alliance [official website] has challenged the act, which is scheduled to take effect on Friday. A previous challenge [JURIST report] before the UK High Court failed.
At the International Criminal Tribunal for the Former Yugoslavia, the trial of Slobodan Milosevic [ICTY case backgrounder] continues today. A webcast begins at 9:30 AM local time [3:30 AM ET]. Also today, the trial of Fatmir Limaj and others [ICTY case backgrounder] continues, with a webcast beginning at 2:45 PM local time [8:45 AM ET].


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